FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Manta Ray Company manufactures diving masks with a variable cost of $28. The masks sell for $37. Budgeted fixed manufacturing overhead for the most recent year was $841,500. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production Sales 2. Production Sales 3. Production Sales 112,200 units 109,300 units 99,000 units 104,900 units 80,600 units 80,600 units Income Higher Under (Method) 1. Absorption costing 2. Variable costing Amount of Difference 3. Same under both 2$arrow_forwardWhat do you understand by crowdfunding?arrow_forwardCan you please do this problem using an equation.arrow_forward
- please explain the answer B ?arrow_forwardCan you simplify this please.arrow_forwardFor each office or business segment, indicate which type of Responsibility Center it is: a. A retail location, such as the Apple Store b. A manufacturing division that manages its own facilities and production equipment c. Call center for a warranty claims processing d. Consulting department of an accounting firm e. Quality control department for a golf ball manufacturer PreviousNextarrow_forward
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